2009

Morgan Stanley: Mid-year Outlook – Investors Face The End of Easy

New market commentary from Morgan Stanley discusses the outlook for risk assets, noting that many positive forces are shifting and creating cyclical and structural tailwinds. The equity bull market has been extended by tax changes and other factors, and now has limited runway ahead and is exhibiting signs of a typical “topping” pattern marked by peaks in credit, yield and equities, making for choppy returns. The report notes, however, that this market top won’t necessarily be marked by the double-digit declines after 2006 and 2007, as those were the largest credit bubbles in modern history and today’s excesses are not nearly as extreme.